Videograf II bets on future for leisure centers
Katowice-based developer Videograf II announced plans earlier this month to invest zl. 100 million-zl. 120 million ($24.4 million-$29.3 million) in five leisure facilities in Silesia.
The family entertainment parks will include bowling, climbing walls, go-carts, a rollercoaster, billiards, a virtual-reality room, a playground, restaurants and discos.
Construction of the first leisure complex in Katowice's Dolina Trzech Stawow (Three Ponds Valley) district is expected to begin in May and be completed by December. The zl. 30 million ($7.3 million) investment will cover 11,000 square meters. Further developments to be completed by 2004 include projects in Gliwice on plac Konstytucji, in Bytom on ulica Dolnoslaska, in Katowice on ulica Chorzowska (on Chelverton's retail and entertainment site), and in Tychy or Bielsko-Biala. These will be smaller outlets of 3,000-4,000 square meters each and cost zl. 15 million ($3.65 million).
To finance the projects, Videograf II set up a subsidiary called Rodzinne Parki Rozrywki (Family Entertainment Parks) and is looking to reach an agreement with two venture capital funds. "We hope to finalize the deal at the beginning of April," said Adam Grabowski, president of Rodzinne Parki Rozrywki and co-owner of Videograf II.
But despite the Silesian projects, leisure parks remain risky ventures, according to Grzegorz Pekalski, the marketing and sales director of French developer Cefic. "It's hard to predict how the market will react," he said, adding that Polish leisure projects have yet to prove successful for investors. "Atomic is withdrawing and Kids' Play is not doing well," he said.
Nevertheless, Pekalski expects Videograf II's projects to profit. With about 4 million people, Silesia is considered a safe bet for investment. The company has developed seven Rura Parki (Pipe Parks) children's playgrounds in shopping centers in Chorzow, in Katowice's King's Cross, in the Plejada shopping center in Bytom and in Tychy's Tesco outlet.
Ataner to launch two Poznan projects
Local developer PPB Ataner announced last week it will launch two projects in Poznan this year worth zl. 175 million-zl. 185 million ($43.8 million-$46.3 million).
The first development will be a joint venture with auto club Automobilklub Wielkopolski to provide land for the development of a B+ class office building on ulica Towarowa in Poznan. The zl. 45 million ($11.3 million), 17,000 square-meter building will have 11,000 square meters of net useable space. Construction of the 11-story structure is slated to begin in August and finish during the first quarter of 2003. "There is a lot of room for such a development in Poznan, as there are not so many office buildings," said Grzegorz Olszak, investment director of Ataner.
Poznan, the capital city of the Wielkopolski voivodship, still lacks modern office space. "There is not enough office supply in Poznan and the demand remains high," said Dorota Gilewicz, an agent with U.K.-based consultancy firm Knight Frank Nieruchomosci. The Poznan Financial Center, developed by Germany's Von der Heyden Group and scheduled to open next month, will be the first class-A office building in Poznan to be completed in two years, bringing 18,000 square meters of new space to the market. According to Knight Frank research, demand for additional office space in Poznan is estimated at 76,000 square meters during the next two to three years.
Ataner's second project is a residential development to be built on a zl. 10 million ($2.4 million), four-hectare plot at the corner of ulica Polanki and ulica Katowicka. The zl. 130 million-zl. 140 million ($31.7 million-$34.1 million) housing estate will comprise 700 new apartments by 2004-2005. Residents can expect to pay zl. 3,000 per square meter.
Olszak said the market for new apartments has slowed since last year. "It's difficult, the market is stagnating and some developers are facing serious trouble," he said, adding that he's confident this will improve in the next year or two. "We don't have problems selling apartments, it's a question of reliability and location of a project." Ataner sells about 400 homes a year compared to 2,000-2,500 sold annually in Poznan.
Holiday Inn in Krakow
Global Hotels Development Group Poland, a subsidiary of the U.K.'s Bass Hotels & Resorts, bought the Holiday Inn Krakow for zl. 61.5 million ($15 million) from Kielce-based general contractor Exbud last month.
The project will be completed in August and have 154 rooms and seven conference rooms. "Market research showed that there is a large demand for hotels in Krakow," said Magdalena K. Krol, the sales and marketing director of Holiday Inn Krakow.
Global Hotels plans to build 20 hotels across the country during the next 10 years.
The project was launched in 1999 by telecom and power group Elektrim and later taken over by Exbud.
Announcements
U.S.-based Enterprise Investors, which manages private equity and venture-capital funds in Eastern and Central Europe, will soon occupy 1,717 square meters on the Warsaw Financial Center's 31st floor. Anglo-American real estate agency Healey & Baker secured the 10-year lease contract on behalf of U.K. developer Golub-Europe.
Bank Handlowy subsidiary Handlowy Heller, a manager of receivables and financing, leased 1,000 square meters in the Warta Tower and International Centre on ulica Chmielna in Warsaw. CB Richard Ellis represented the developer Warta Inwestycje in the deal.
